GAIL India defers bidding for nine LNG ships by a month

GAIL India has deferred a tender for hiring nine newly-built ships to ferry LNG from the US by one month, as per reports. Bids for the tender were to close on February 29 but now have been extended to March 31.

GAIL India has deferred a tender for hiring nine newly-built ships to ferry LNG from the US by one month, as per reports. Bids for the tender were to close on February 29 but now have been extended to March 31.

As per report, the company is hiring nine LNG ships at an estimated cost of US$9 billion. These ships have a cargo capacity of 1,50,000-1,80,000 cubic metres and will transport liquefied natural gas from Sabine Pass and Cove Point LNG projects in the US. The supply is expected to start from December 2017.

GAIL India  is the largest state-owned natural gas processing and distribution company in India.

Reliance Infra jumps 3.5% on tie-up with Paytm

The company's Delhi power distribution arm BSES tied up with Paytm, as per media reports.

Reliance Infrastructure jumps 3.5% to Rs.443.85 on BSE. The company's Delhi power distribution arm BSES tied up with Paytm, as per media reports.

The scrip opened at Rs. 433 and has touched a high and low of Rs. 444.8 and Rs. 432.1 respectively. So far 2422251(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 11279.64 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 622.05 on 05-Jan-2016 and a 52 week low of Rs. 282.2 on 25-Aug-2015. Last one week high and low of the scrip stood at Rs. 430.4 and Rs. 397.25 respectively.

The promoters holding in the company stood at 48.36 % while Institutions and Non-Institutions held 35.47 % and 13.05 % respectively.

The stock is currently trading above its 50 DMA.

Government looking Offshore to diversify its Largely Domestic Debt portfolio

The low share of external debt might be the reason why India has been protected from uncertainties of global markets. But the approach taken by India is very different to what other emerging nations have done.

For long, India has depended primarily on domestic debt for its borrowing needs. The low share of external debt might be the reason why India has been protected from uncertainties of global markets. But the approach taken by India is very different to what other emerging nations have done. Like most of those countries, India still does not have an international sovereign bond issuance program.
 
But foreign investors are looking for high yield debts, in a world that is increasingly becoming a low-rate market. So it might actually be the right time for government to issue offshore sovereign bonds. Low interest rates in international markets indicate that it might be cost effective to borrow from abroad. Another benefit of this will be that it will add to the foreign exchange reserves of the country and more importantly, establish a benchmark for pricing rupee bonds offshore. But experts feel that the decision to launch such bonds cannot be made based solely on the cost-benefit and should also consider the impact on Balance of Payments of the country. The need to access low-cost international markets should be justified in the context of overall savings for the economy.
 
Apart from that, just going for one-time issuance might not be sufficed. There is a need to put out a regular schedule for such issues as it will create and build up interest among investors and also bring in predictability about the schedule of redemptions in future.
 
If government is successful in issuing sovereign bonds, it will have a positive spillover effect on the offshore rupee bonds of Indian companies. RBI has allowed firms to sell rupee-denominated bonds overseas to allow them to diversify their funding sources. But these bonds did not receive much investor interest as investors demanded higher coupon rate as a compensation for the higher currency risk. This in turn made the entire idea of borrowing cheaply from aboard redundant.

Global Crude oil price of Indian Basket at US$ 33.22 per bbl on Tuesday

The international crude oil price of Indian Basket as computed/published by PPAC under the Ministry of Petroleum and Natural Gas was US$ 33.22 per barrel (bbl) on Tuesday.

The international crude oil price of Indian Basket as computed/published by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 33.22 per barrel (bbl) on Tuesday. This was higher than the price of US$ 31.86 per bbl on previous publishing day of Monday.

In rupee terms, the price of Indian Basket increased to Rs 2264.23 per bbl on Tuesday as compared to Rs 2185.97 per bbl on Monday. Rupee closed stronger at Rs 68.16 per US$ on 01.03.2016 as against Rs 68.62 per US$ on Monday. The table below gives details in this regard:

Particulars	Unit	Price on March 01, 2016 (Previous trading day i.e. 29.02.2016)	Pricing Fortnight for 01.03.2016 (12 Feb to 25 Feb, 2016)
Crude Oil (Indian Basket)	($/bbl)	33.22             (31.86)	30.61
	(Rs/bbl	2264.23         (2185.97)	2096.17
Exchange Rate	(Rs/$)	68.16             (68.62)	68.48

 

HCL Tech eyes promoters' stake in Geometric

HCL Tech is expected to acquire a 38% stake from Geometric's principal shareholders - the Godrej family and CEO Manu Parpia, according to the newspaper.

HCL Technologies Ltd. has emerged as the front-runner to acquire Geometric Ltd in a deal valuing the mumbai-based IT company at about US$200 million, reports a national daily.

HCL Tech is expected to acquire a 38% stake from Geometric's principal shareholders - the Godrej family and CEO Manu Parpia, according to the newspaper.

HCL Tech is also expected to merge Geometric with itself, according to the daily.

The deal is in the final stage and a formal announcement is likely to made shortly, says the paper.

Godrej holds 31.23% stake in Geometric through Godrej & Boyce Manufacturing Company Ltd and Godrej Investments, while Parpia & his family owns 7.23%.

Geometric started as part of the Godrej Group in 1984 but was later spun off into an independent company a decade later, reports the daily.

Mumbai-based independent investor Rakesh Jhunjhunwala and his wife, who together own 19% in Geometric, are likely to pare their stake in separate open market transactions, reports the paper.

In March last year, the Godrej family and Parpia had appointed JM Financial to sell their 39% stake in the engineering solutions company.

Tech Mahindra, Capgemini, HCL Tech, GlobalLogic and L&T Infotech were among the potential buyers for the acquisition, according to media reports.

With the backing of the Jhunjhunwalas, HCL could mop up over 57% shares of Geometric followed by a mandatory open offer to buy up to 26% from the public shareholders.

SEBI rules limit promoter shareholding in listed companies to 75% unless the acquirer is keen on delisting the company.
Geometric reported revenues of US$181.40 million for the financial year 2014-15 and employs 4,800 people across the world.

Geometric shares are up ~5% at Rs 160.20 on NSE while HCL Tech shares are up ~1% at Rs. 842.

Stock Commentary:

HCL Technologies Ltd is currently trading at Rs. 841.55, up by Rs. 9.55 or 1.15% from its previous closing of Rs. 832 on the BSE. The scrip opened at Rs. 837 and has touched a high and low of Rs. 847 and Rs. 830.4 respectively. So far 417309(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 117315.3 crore.

Geometric Ltd is currently trading at Rs. 159, up by Rs. 6.7 or 4.4% from its previous closing of Rs. 152.3 on the BSE. The scrip opened at Rs. 162 and has touched a high and low of Rs. 167.95 and Rs. 157.8 respectively. So far 646087(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 990.41 crore.

Kotak Mahindra Bank gains 3%

Sumitomo Mitsui Banking Corp sold stake worth Rs. 1,151.61 crore in Kotak Mahindra Bank through an open market transaction, according to reports.

Kotak Mahindra Bank was up by 3% at Rs. 657. Sumitomo Mitsui Banking Corp sold stake worth Rs. 1,151.61 crore in Kotak Mahindra Bank through an open market transaction, according to reports.

As of December 31, 2015, the board held 3.91 per cent stake in Kotak Mahindra.

The scrip opened at Rs. 650 and has touched a high and low of Rs. 657.6 and Rs. 642.1 respectively. So far 590296(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 116942.95 crore.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 744.45 on 21-Jul-2015 and a 52 week low of Rs. 586.5 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs. 640.5 and Rs. 586.5 respectively.

The promoters holding in the company stood at 33.74 % while Institutions and Non-Institutions held 39.13 % and 27.14 % respectively.

The stock is currently trading above its 200 DMA.

Wockhardt gallops 11%

The scrip opened at Rs. 814 and has touched a high and low of Rs. 898.5 and Rs. 813.05 respectively.

Wockhardt zoomed 10.4% to Rs.887.40 on BSE. The stock hit an upper circuit at Rs.883.85 on BSE. On Feb 24, Wockhardt’s promoter has bought 4.323 crore non-convertible preference shares and 1.853 crore optionally convertible preference shares for Rs.36 crore.

The scrip opened at Rs. 814 and has touched a high and low of Rs. 898.5 and Rs. 813.05 respectively. 

So far 3075,490 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 8879.39 crore.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 2000 on 08-Apr-2015 and a 52 week low of Rs. 706.35 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs. 812 and Rs. 752.6 respectively.

The promoters holding in the company stood at 74.19 % while Institutions and Non-Institutions held 11.88 % and 13.8 % respectively.

The stock is currently trading above its 200 DMA.

BHEL secures Rs.5600 cr order from TANGEDCO; scrip zooms 7.8%

This is the second 800 MW rating supercritical order awarded to BHEL by TANGEDCO in less than a month, reinforcing BHEL's position at the forefront of the power equipment industry in India.

BHEL climbed 7.8% to Rs.99.95 on BSE. The company has bagged an order worth Rs. 5,600 crore for 1,600-megawatts (MW) power plant from Tamil Nadu Generation and Distribution Corporation.  This is the second 800 MW rating supercritical order awarded to BHEL by TANGEDCO in less than a month, reinforcing BHEL's position at the forefront of the power equipment industry in India.

The scrip opened at Rs. 96.95 and has touched a high and low of Rs. 99.8 and Rs. 95.75 respectively. So far 7228980(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 22689.25 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 289.85 on 21-Jul-2015 and a 52 week low of Rs. 90.4 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs. 98.2 and Rs. 90.4 respectively.

The promoters holding in the company stood at 63.06 % while Institutions and Non-Institutions held 33.08 % and 3.86 % respectively.

The stock is currently trading above its 200 DMA.

VA Tech Wabag zooms 13%

The scrip opened at Rs. 432 and has touched a high and low of Rs. 484.6 and Rs. 432 respectively

VA Tech Wabag Ltd stock was higher by 13% at Rs.474.. Report says IDFC Asset Management Company Limited-IDFC Hybrid Infrastructure sold 7,24,452 shares of the company at Rs. 421.24 on the NSE.

The scrip opened at Rs. 432 and has touched a high and low of Rs. 484.6 and Rs. 432 respectively. So far 125485(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 2292.12 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 970 on 17-Mar-2015 and a 52 week low of Rs. 409.3 on 01-Mar-2016. Last one week high and low of the scrip stood at Rs. 514.95 and Rs. 409.3 respectively.

The promoters holding in the company stood at 28.95 % while Institutions and Non-Institutions held 52.4 % and 18.65 % respectively.

The stock is currently trading above its 200 DMA.

Bajaj Auto Feb sales at 272,719 units

The motorcycle sales were at 235, 282 units YoY, up 9% YoY.

Bajaj Auto Ltd sales stood at 272,719 units in February as against 243,319 YoY.

The motorcycle sales were at 235, 282 units YoY, up 9% YoY.

The scrip opened at Rs. 2262 and has touched a high and low of Rs. 2306.95 and Rs. 2262 respectively. So far 147589(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 65397.62 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 2655 on 23-Jul-2015 and a 52 week low of Rs. 1913.8 on 30-Apr-2015. Last one week high and low of the scrip stood at Rs. 2409 and Rs. 2173.4 respectively.

The promoters holding in the company stood at 49.29 % while Institutions and Non-Institutions held 26.03 % and 24.66 % respectively.

The stock is currently trading above its 200 DMA.

ITC overtakes Infosys in market-cap; 3rd most valuable company now

Shares of ITC ended 10% higher to Rs 325.10 with market valuation stood at Rs 2,61,403.46 crore.

ITC has surpassed Infosys and HDFC Bank to emerge as the third most valuable company in terms of market valuation, according to reports.

Shares of ITC ended 10% higher to Rs 325.10 and the market valuation stood at Rs 2,61,403.46 crore.

Report says that the market capitalisation of Infosys stands at Rs 2,58,291.43 crore and HDFC Bank’s at Rs 2,48,946.98 crore.

TCS retained market- cap position with a market cap of Rs. 4,48,272.36 crore.

New RBI norms to help banks unlock Rs. 40,000 cr

The unlocking of capital follows a review carried by the RBI with the aim to further align the definition of regulatory capital with the globally adopted Basel III norms, adds the newspaper.

The Reserve Bank of India (RBI) on Tuesday relaxed norms relating to the treatment of certain balance-sheet items, including property, which will help banks unlock capital totaling about Rs. 40,000 crore, reports a financial newspaper.

The revised RBI norms will give public sector banks (PSB) access to additional capital of INR 35,000 crore, while it could be about INR 5,000 crore for private sector banks, according to the business daily.

The unlocking of capital follows a review carried by the RBI with the aim to further align the definition of regulatory capital with the globally adopted Basel III norms, adds the newspaper.

Banks have now been allowed to include some items, such as property value and foreign exchange, for calculation of Tier 1 capital (CET1), instead of Tier 2 capital, according to the daily.

State Bank of India (SBI) will be one of the biggest beneficiary from the change in the carrying amount of a bank’s property on the balance sheet, as it has huge real estate across the country, says the paper.

As per the new RBI norms, CET1 capital, comprising paid-up equity capital, statutory reserves, capital reserves, other disclosed free reserves (if any) and balance in P&L Account must be at least 5.5 per cent of risk-weighted assets.

RBI Governor Raghuram Rajan had last month said that the central bank was trying to identify non-recognisable capital, such as undervalued assets, already on bank balance sheets and could allow some of these to count as capital under Basel norms, provided a bank meets minimum common equity standards.

Top 15 stocks in focus today: Kotak Mahindra Bank, Tata Motors, Wipro

Check out the companies which will be in focus during trade today based on recent and latest news developments.

Cairn India Ltd: Cairn India told the Delhi High Court that under the Foreign Trade Policy (FTP), the Central Government cannot stop it from exporting crude oil from its Rajasthan oil field.

Kotak Mahindra Bank: Sumitomo Mitsui Banking Corp sold stake worth Rs. 1,151.61 crore in Kotak Mahindra Bank through an open market transaction, according to reports.

Tata Motors: Tata Motors continued to witness year-on-year growth in the M&HCV segment in February 2016, with a growth of 22%. Total sales of Tata Motors passenger and commercial vehicles (including exports) were at 46,674 vehicles, higher by 6%, over 44,233 vehicles, sold in February 2015.

Wipro: Wipro said it has completed its USD 460-million acquisition of HealthPlan Services earlier than expected.

Tata Chemicals: The Reserve Bank of India has notified that the foreign shareholding by Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) in Tata Chemicals Limited has reached the trigger limit.

Cadila Healthcare: Zydus Cadila received a final approval from the US Food and Drug Administration (USFDA) to market Glyburide and Metformin Hcl Tablets USP in strengths of 1.25/250, 2.5/500 and 5/500 mg.

BHEL: BHEL bags Rs.5,600 Crore order for 1,600 MW Supercritical Power Project in Tamil Nadu.

Maruti Suzuki: Maruti's passenger car sales declined by 3.9% to 87,149 units as against 90,728 units in the Jan'15.

Mahindra & Mahindra: Mahindra & Mahindra's PV segment sold 23,718 units and grew by 25% yoy in Feb 2016.

Atul Auto: Atul Auto announced the sales figures for the month of February 2016. The company sold 3,510 units with a growth of 3.17% YoY as against 3,402 units in last year corresponding period.

Hero MotoCorp: The company's total sales for the month of February 2016 grew 13.6% at 5.5 Lakh Units (YoY).

Eicher Motors: The company’s total sales of two-wheelers rose by 63% to 49,146 units as against 30,240 units sold in February 2015.

Gammon Infrastructure: The company has received approvals from National Highway Authority of India (NHAI) and Gammon Infrastructure Project Limited (GIPL) and consents from the Special Purpose Vehicles (SPV) lenders for disinvestment of the company’s entire shareholding held directly and/or through nominees in its project companies to BIF India Holdings Pte Ltd.

Persistent: Persistent System's US arm has acquired Citrix CloudPlatform, signing an agreement with Citrix Systems to buy two product lines.

Tata Comm: Tata Communications and Vodacom has called off deal to sell Neotel, Tata Comm's South African arm. The company said that Neotel & Vodacom pact lapsed on regulatory complexity. Sale of Neotel was considered important for Tata Communications debt reduction.